Hedging and diversification are critical for portfolios now, but investors must not confuse diversification as a hedging tool, say super fund and asset management strategists.
Fund managers need to construct robust multi-asset portfolios with both defensive hedges and alpha-generating assets as well as stabilising investments that can produce non-correlated returns in the current inflationary environment.
Responsible investments in Australia hit a record $1.54 trillion of assets under management in 2021 according to the latest report from the Responsible Investment Association of Australia. The growth of the market has continued apace as climate change and sustainability tailwinds affecting all parts of the economy continues to build momentum.
Australian superannuation funds could look at stepping up investments in emerging markets such as Indonesia, if they can get Federal government backed insurance for higher risk investments which may be seen as furthering Australia’s “strategic objectives”.
A bid led by the RoZetta Institute is seeking funds from the Commonwealth government for a 10-year research project into the super industry and retirement income involving both academic and private sector partners.
The transition to renewable energy will be “volatile and complicated” like other major transitions in history, and spikes in demand and pricing for coal, oil and gas are likely over the near term, according to an expert in global resources strategy.
The proposed changes in the Quality of Advice Review led by Michelle Levy are likely to encourage super funds to expand their financial advice services to members.
Companies and funds must grapple with growing regulatory and disclosure requirements that add to complexity, time and costs. Michael van Niekerk of Peakview Strategy summarises the relevant regulatory frameworks.
With the Retirement Income Covenant now in effect, super fund trustees are required to set out how they are going to help members with their retirement outcomes. Mercer’s Tim Jenkins and Angela Hartl examine the retirement income strategies of 102 super funds.
The world is experiencing the results of an underinvestment in traditional oil/gas energy infrastructure which was compounded by Covid- 19, when some companies believed that peak oil demand had arrived pulling back even more on investment, then came the Russian invasion of Ukraine, and the disruption is overlaid with the longer-term focus on energy transition. We look at both sides of the demand and supply puzzle.
In episode 130, Investment Magazine’s Julia Newbould speaks to Tom Nelson, head of thematic equity at Ninety One about energy markets.
The global economy is facing a potential period of stagflation with persistently high inflation and slow growth, according to the chief investment officer of the $230 billion Australian Retirement Trust, Ian Patrick.
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Investment Magazine provides in-depth, monthly analysis of trends and developments for all the businesses in which superannuation funds engage‚ including asset allocation, investment manager selection, custody and fund accounting, member administration, group insurance and compliance.
We acknowledge the Traditional Custodians of this land upon which Conexus Financial sits, the Cadigal of the Eora Nation. We recognise their continuing connection and unique cultural and spiritual relationships to the land, waters and community. We pay our deepest respects to them and their culture, and to Elders both past and present.
